Abstract: This study uses panel data of major wheat producing provinces in China from 1998 to 2016 to investigate the impact of environmental regulation on the wheaten green total factor productivity (GTFP). The empirical investigation adopts Malmquist-Luenberger index and a spatial econometric approach which allows for spatial interactions among observations. Some key results show that: (1) Significant spatial autocorrelations exist in wheaten GTFP. Environmental regulation can promote the technological innovation in local and adjacent provinces, and further promote the growth of wheaten GTFP in local and adjacent provinces which indicates the positive spillover effects of environmental regulation on wheaten GTFP; (2) A significant “inverted U” relationship is found between the intensity of environmental regulation and wheaten GTFP. Specifically, the western regions are located in the left side of turning point whereas the central regions are located in the right side of turning point, which suggest the inexistence of strong “Porter Hypothesis” in China’s wheat industry; (3) The extensive growth of wheat industry is at the cost of destroying the ecological environment because results show that the GTFP of wheat is significantly lower than the traditional wheaten TFP.